2016 - 32201 - SC Homes Fund, LLC - SIA On-Site & Off-SiteCity of La Quinta
CITY COUNCIL MEETING: October 15, 2024
STAFF REPORT
AGENDA TITLE: APPROVE ASSIGNMENT AND ASSUMPTION AGREEMENTS AND
AMENDMENT TO SUBDIVISION IMPROVEMENT AGREEMENTS FOR TRACT MAP
NO. 32201, A RESIDENTIAL DEVELOPMENT LOCATED AT THE NORTHWEST
CORNER OF AVENUE 60 AND MADISON STREET
RECOMMENDATION
Approve Assignment and Assumption Agreements and Amendment to Subdivision
Improvement Agreements for Tract Map No. 32201, and authorize the City Manager to
execute said agreements.
EXECUTIVE SUMMARY
SC Homes Fund, LLC has sold its interest in this tract to a new developer,
Crestwood Corporation (Crestwood) and desires to assign the subdivision
improvement obligations to Crestwood.
Crestwood requests approval of Assignment and Assumption Agreements and
Amendment to Subdivision Improvement Agreements (Agreements) for Tract Map
No. 32201.
FISCAL IMPACT
There is no fiscal impact to the City. Crestwood has submitted replacement securities to
guarantee construction of the improvements.
BACKGROUND/ANALYSIS
Tract Map No. 32201 is a residential development located at the northwest corner of
Avenue 60 and Madison Street (Attachment 1).
In February 2016, SC Homes Fund, LLC entered into Subdivision Improvement
Agreements for Tract Map No. 32201. SC Homes Fund, LLC has sold its interest in this
tract to Crestwood. The City will release SC Homes Fund’s securities upon executing the
Agreements (Attachment 2).
CONSENT CALENDAR ITEM NO. 6
113
ALTERNATIVES
Staff does not recommend an alternative.
Prepared by: Amy Yu, Associate Engineer
Approved by: Bryan McKinney, P.E., Public Works Director / City Engineer
Attachments: 1. Vicinity Map
2. Assignment and Assumption Agreements and Amendment to
Subdivision Improvement Agreements for Tract No. 32201
114
V I C I N I T Y M A P
NOT TO SCALE
TRACT MAP NO. 32201
ATTACHMENT 1
115
CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 32201
OFF-SITE IMPROVEMENTS
THIS SUBDIVISION IMPROVEMENT AGREEMENT"Agreement") is made and entered into this
FEBRUARY
day of, 20 16
by and between SC Homes Fund, LLC, a Delaware limited liability company, hereinafter referred to as
"Subdivider," and the City of La Quinte, a municipal corporation of the State of California, hereinafter
referred to as "City."
RECITALS:
A. Subdivider has prepared and submitted to City for final approval and recordation a final map or Tract
map (the "Map") of a unit of land in the City of La Quinta, County of Rivemide, which unit of land is
known as Tract No. 32201 (the "Tract") pursuant to the provisions of Section 00410, et seq. of the
California Government Code (the "Subdivision Map Act'). The Subdivision Map Act and City
ordinances and regulations relating to the fi|ing, approval and recordation of subdivision maps are
sometimes collectively referred to in this Agreement as the "Subdivision Laws."
B. A tentative map of the Tract has been approved subject to the Subdivision Laws and to the
requirements and conditions contained in City Council Resolution No. 2UU4'08O(the "Resolution of
Approval"). The Resolution of Approval is on file in the office of the City Clerk and is incorporated into
this Agreement by reference.
C. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and
private improvements (the 'Improvements).
D. The Improvements have not been installed and accepted at this time.
E. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the
lmprovements as provided in Section 66462 of the Subdivision Map Act. In consideration of approval
of a final map for the Tract by the City Council, Subdivder desires to enter into this Agneement,
whereby Subdivider promises to install and oomp|ehe, at Subdivider's own expenoe, all the public
improvement work required by City in connection with the proposed Tract. Subdivider has secured
this Agreement by improvement security required by the Subdivision Laws and approved by the City.
NOW, THEREFORE, it is agreed by and between the parties hereto as foliows:
1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall
furnish complete original improvement plans for the ounstnuction, installation and completion of the
Improvements meeting the requirements of the City Engineer. The Improvement Plans for the Tract
shall be maintained on file in the office of the City Engineer and shall be incorporated into this
Agreement by reference. All references in this Agreement to the Improvement Plans shall include
reference to any specifications for the Improvements as approved by the City Engineer.
2. Improvements. Subdivider shall construct the Improvements required to be constructed on the
lmprovement Plans or agreed to be constructed under the Resolution of Approval and this Agreement
as more specifically described in Exhibit ''A." attached hereto and expressly made a part hereof by
this reference, and shall bear the full cost thereof. The methods, standards, specifications, sequence,
and scheduling of construction shall be as approved by the City Engineer.
3. Improvement Security. Subdivder shall at all times guarantee Subdivider's performance of this
Agreement by furnishing to City, and meintaining, good and sufficient security as required by the
Subdivision Laws on forms and in the amounts approved by City for the purposes as follows:
A. One class of security to be provided by Subdivider, hereinafter referred to as "performance
security," shall assure the faithful performance of this Agreement including construction of the
|mprovements, payment of Subdivider's fair share of Improvements which have been or will be
constructed by others ("Participatory |mpnnvemmnts^), and payment of plan check and permit
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fees. The performance security shall also include good and sufficient security in the amount of
one hundred percent (100%) of the estimated cost of setting subdivision monuments as stated
hereafter in this Agreement ("Monumentation Security"), A second class of security to be
provided by Subdividar, hereinafter referred to as "payment security," shall assure the payment of
the cost of labor, equipment and materials supplied to construct the Improvements. A third class
of security to be provided by Subdividar, hereinafter referred to as warranty security," shall serve
as a guarantee and warranty of the Improvements for a period of one year following the
completion and acceptance of the Improvements. Subdivider shall furnish performance and
payment security prior to and as a condition precedent to City Council approval of the Map.
Subdivider shall provide warranty security after Improvements are complete and prior to
acceptance of the Improvements by the City Council. Warranty security shall not be required for
Monumentation or Participatory Improvements. However, the City may utilize Monumentation
Security for performance of or payment for the work in accordance with the Subdivision Map Act.
As part of the obligation secured by each of the performance security, payment security and
warranty aeouhh/, and in addition to the face amount of each such oeouh<y, each such security
shall include and assure the payment of costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby
secured.
B. Improvement security shall conform with Section 66499 of the California Government Code and
may be one or more of the following:
1) A cash deposit with City or a responsible escrow agent or trust company, at City's option.
2) Surety bonds, of the form specified in subsection 66499.2 of the California Government
Code, issued by a surety or sureties listed in the U.S, Department of Treasury Circular 570
(latest version).
3) Certificates of deposit, in City's name, from one or more financial institutions subject to
regulation by the state or federal government and having a financial quality rating of "A" or
bmttorondaonmmitmantno|iabi|ih/nadngof''F<'2^orbettmronthe|nvostmmntDatoExrhange
(of the Los Angeles County Treasurers office).
4) Irrevocable letters of credit, in a form acceptable to and approved by the City Attorney, issued
by one or more financial institutions meeting the requirements of Paragraph (3), pledging that
the funds necessary to carry out the completion of the Improvements are on deponit,
guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment
by any creditor of the depositor until released by City. Letters of credit shall guarantee that all
or any portion of the funds available pursuant to the letters of credit will be paid upon the
written demand of City and that such written demand need not present documentation of any
type as a condition of payment, including proof of loss. The duration of any such letter of
credit shall be for a period of not less than one year from the execution of the agreement with
which it is provided and shall atmte, on its face, that the letter of credit will be automatically
renewed until such time that City authorizes its expiration or until sixty (60) days after City
receives notice from the financial institution of intent to allow expiration of the letter of credit.
5) A lien upon the subdivided property, if City finds that it would not be in the public interest to
require the installation of the Improvements sooner than two (2) years after recordation of the
final map or Tract map for which the Improvements are required. The lien shall provide a
collateral value of three (3) times the estimated cost of the Improvements and shall include
the power of sale of the real property, all buildings and improvements thereon, or that may be
erected upon or made thereto, together with all hereditaments and appurtenances thereunto
be|onging, or in any wise apperteining, and the neomn/adons, rmmoinders, nants, innuon, and
profits thereof. The collateral value of the property shall be established at Subdivider's
expense through an appraisal approved by City.
6) An instrument of credit from an agency of the abate, federal or local government, when any
agency of the state, federal, or local government provides at least twenty percent (20%) of
the financing for the lmprovements.
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7) When Subdivider is a non-profit organizadon, security may be negotiable bonds, of the kind
approved for securing deposits of public moneys with City or in favor of City, as specified in
Section 16430 of the California Government Code, deposited, at City's option, with City or a
responsible escrow agent or trust company.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the
performance security shall equal one hundred percent (100%) of the estimated cost of
constructing the Improvements, including payment of plan check and permit fees, as estimated by
the City Engineer or a duly authorized representative of the City Engineer. The amount of
Payment security shall equal the amount of the amount of performance seouhty, except as
otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security
shall equal Ten Percent (10%) of the amount of performance security except as otherwise set
forth in Exhibit A. The securities required by this Agreement shall be kept on file with the City
Clerk. The terms of the security documents specified in this Agreement are incorporated into this
Agreement by this reference. If any security is replaced by another approved aoouhty, the
replacement shall be filed with the City Clerk and, upon fi|ing, shall be deemed to have been
made a part of and incorporated into this Agreement. Upon filing of a replacement security with
the City Clerk, the former security may be released. The City Engineer shall approve replacement
of security.
D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to
the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract
map or waiver of Tract map) rather than to individual security instruments. The fees shall be paid
separately for each different form and/or source (surety or financial institution) of security initially
submitted and for substitution of securities but shall not be required for submittal of warranty
security if the warranty security is of the same form and from the same source as the
performance security it replaces. Administrative fees for security shall be as foliows:
1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and
4) of SECTION 3.B., which require the establishment of evidence of the reliability of the
surety or financial instituUon, the administrative fee shall be One Hundred Fifty Dollars
2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will
prepare lien agreements and subordination agnaements, administer valuation of the real
property and administer the agreements over the life of the lien, all of which require legal
assistance and financial advice, Subdivider shall pay to City an administration fee of One Half
of One Percent (0.5%) of the estimated cost of the improvements secured but not less than
Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Participatory |mprovmments, if any, are identified in Exhibit A. Security for Participatory
Improvements shall remain in place until the Participatory Improvements are constructed and
actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost
of the Participatory |mprovemanta, and shall guarantee the reimbursement by Subdivider of
Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty
security shall not be required for Participatory Improvements.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in
replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit
said cash within 30 days of the date of the written demand from City. City may present a written
demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City
the Iesser of: 1) the amount demanded, or 2) the amount of the security.
F. Security shall not mxpna, be reduced or become wholly or partially invalid for any reoson,
including non-payment of pnemiuma, modifications of this Agreement and/or expiration of the time
for performance stated in this Agreement.
G. Security shall be released in the following manner:
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1) Performance security shall be released upon the final completion and acceptance or
approval, by the City Council of the Improvements subject to the provisions of Section 10 of
this Agreement.
2) The City Engineer may authorize partial reduction of performance security as work
progreuues, upon application by Subdivider. However, no such reduction shall be for an
amount less than Ten Percent (10%) of the total performance security provided for the faithful
performance of the act or work. In no event shall security be reduced below that required to
guarantee the completion of the act or work or obligation secured, plus Ten Percent (10Y6).
The City Engineer shall not allow more than two partial reductions of security furnished for
any improvement agreement.
3) Participatory Improvement security shall be released upon payment by Subdivider of
Subdivider's share of the cost or estimated cost of the Participatory Improvements.
4) If City receives no notice of recorded claims of lien, labor and materials security shall be
released in full 90 days after final acceptance and/or approval by the City Council, of the
Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision
Map Acshall apply.
5) No security given for the guarantee or warranty of work shall be released until the expiration
of the warranty period and until any claims filed during the warranty period have been settled.
As provided in paragraph 13 of this Agreement, the warranty period shall not commence until
final acceptance of all the work and improvements by the City pursuant to Paragraph 10.
Warranty security not utilized during the warranty period shall be released one year after final
acceptance or approval by the City Council of all Improvements. Hovvaver, if at the end of the
one-year warranty pehod, there are one or more outstanding requests by City for
performance of work or provision of materials under the terms of the werranty, warranty
security shall be retained until the outstanding requests are satisfied or until Subdivider has
made other arrangements satisfactory to the City Engineer.
6) City may retain from any security released an amount sufficient to cover costs and
reasonable expenses and fees, including reasonable attorneys' fees.
4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits
required for that phase of work and pay all required fees. Work performed under a permit or permits
shall comply with aU provisions of the required permits.
5. Off-site Improvements. When the construction of one or more of the Improvements requires or
necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its
best efforts purchase such real property at a reasonable price. In the event that Subdivider is
unsuonessfu|, despite its best efforts, to acquire such real property at a reasonable price, Subdivider
may request in writing that City attempt to acquire such real property. City may, but is not required to,
agree to attempt to acquire such real property on behalf of Subdivider. If City so agnaon. City and
Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said
separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150Y6)
of the appraised fair market value of the real property. Any unexpended portion of said advance shall
be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be
paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall
the failure of Subdivider or City to acquire such real property axouee, waive, or otherwise terminate
Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the
Conditions of Approval.
6. Completion of Improvement ; Inspection.
6.1 Construction of Improvements. Subdivider shall begin construction of the Improvements within
ninety (90) days and shall complete construction within twelve (12) months after the approval of this
Agreement. Portions of the Improvements may be completed at a later data, as determined by the
City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of
the Improvements within the specified time periods shall constitute cause for City, in its sole
discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise
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improvement security requirements as necessary to ensure completion of the improvamnnta, and/or
to require modifications in the standards or sequencing of the Improvements in response to changes
in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise
affect the validity of this agreement or Subdivider's obligations hereunder.
6.2 Inspection. Subdivider shall at all times maintain proper facilities and safe access for inspection
of the public improvements by City and to the shops wherein any work is in preparation. Upon
completion of the work, the Subdivider may request a final inspection by the City Engineer or the City
Engineer's authorized representative. If the City Engineer or the designated representative
determines that the work has been completed in accordance with this Agpemment, then the City
Engineer shall certify the completion of the public improvements to the City Council. No
improvements shall be finally accepted unless all aspects of the work have been inspected and
determined to have been completed in accordance with the Improvement Plans and City standards
and accepted by the City as described in Paragraph 10 of this Agreement. Subdivider shall bear all
costs of plan check, inspection and certification.
7. Force Majeure. In the event that Subdivider is unable to perform within the time limits herein due to
sthkeo.actofGod.oroUhereventobeyondSubdivide/snontro|.bheUme|imitaforob|igaUonsaffecb»d
by such events will be extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of
time for completion of the Improvements. The City Council, in its sole and absolute dionreUon, may
approve or deny the request or conditionally approve the extension with additions or revisions to the
terms and conditions of this Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance
to those required in SECTION 3 heneinebove, to cover the period of extension. The value of the
securities shall be sufficient to ensure the performance of and payment for Improvements that remain
incomplete at the time of the e/tennion, and to provide warranty security on completed
Improvements.
9. Survey Monuments. Before final approval of street improvmmonts. Subdivider shall place survey
monuments in accordance with the provisions of Sections 66495. et sec. of the Subdivision Map Act
and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that
the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor
setting the monuments, and intersection monument tie -outs for monuments set in public streets.
10. Final Accetance of Improvements. At the completion of construction and prior to acceptance ofthe
Improvements by City, Subdivider shall submit a request for final approval by City. The request shall
be accompanied by any required certifications from Subdividers engineers or surveyors, approval
letters from other agencies having jurisdiction over and approval authority for improvements required
by this Agreement or the Conditions of Approval, and any required construction quality documentation
not previously submitted.
Upon receipt of said request, the City Engineer or a duly -authorized representative will review the
required documentation and will inspect the Improvements. If the Improvements are determined to
be in accordance with applicable City standards and apeoifioadonu, and as provided herein,
obligations required by the Conditions set forth in the Resolution of Approval and this Agreement
have been satisfied, and Subdivider has provided revised plans as required in Paragraph 12,
hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council.
11. Injury to Improvements. Until such time as the Improvements are accepted by City in accordance
with Paragraph 10, Subdivider shall be responsible for and bear the risk of loss to any of the
improvements constructed or installed. Until such time as all Improvements required by this
Agreement are fully completed and accepted by City. Subdivider will be responsible for the care,
maintenance of, and any damage to such improvements. City shall not, nor shall any officer or
employee thereof, be liable or responsible for any accident, loss or damage, regardless of cause,
happening or occurring to the work or improvements specified in this Agreement prior to the
completion and acceptance of the work or improvements. All such risks shall be the responsibility of
and are hereby assumed by Subdivider.
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12. Revisions to Plans. When the Improvements have been inspected and approved by the City
Engineer, Subdivider shall make any necessary revisons to the original plans held by City so the
plans depict the actual lmprovements constructed. When necessary revisions have been made, each
separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or
"Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the
improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to
the City Engineer.
13. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one
(1) year, beginning on the date of final acceptance of the Improvements by the City Counci|, against
any defective work or labor done, or defective materials furnished, and shall repair or replace such
defective work or materials. If within the warranty period any work or improvement or part of any
work or improvement done,furnished, inutaUed, constructed or caused to be done, furniahed, installed
or constructed by Subdivider fails to fulfill any of the requirements of this Agreement or the
improvement plans and specifications referred to herein, Subdivider shall without delay and without
any cost to City, repair or replace or reconstruct any defective or otherwise unsatisfactory part or
parts of the work or structure. Should Subdivider fail to act promptly or in accordance with this
nequinement. Subdivider hereby authorizes City, at City's sole nption, to perform the work twenty (20)
days after mailing written notice of default to Subdivider and to Subidivider's Suveh/, and agrees to
pay the cost of such work by City. Should City determine that an urgency requires repairs or
replacements to be made before Subdivider can be nodOod. City may, in its sole discretion, make the
necessary repairs or replacement or perform the necessary work and Subdivider shall pay to City the
cost of such repairs
14. Release of Security. City shall retain and release securities in accordance with the provisions of
Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require
Subdivider to provide a title report or other evidence sufficient to show claims of lien, if any, that may
affect the amount of payment security released,
15. City Riqht to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not
been perfonned, or commenced and diligently puroued, within sixty (60) days after written notice of
default from City, then City may perform the obligation, and Subdivider shall pay the entire cost of
such performance by City including costs of suit and reasonable attorney's fees incurred by City in
enforcing such obligation. In cases of emergency or compelling public intenae1, as determined by the
City Engineer, the requirement for written notice of default and/or the passage of sixty (60) days shall
be deemed waived and all other provisions of this Article shall remain in effect.
16. lnjury to Public lmprovements, Public Property or Public Utility Facilities. Subdivider shall replace or
have replaced, or repair or have repaired, as the case may be, all public improvements, public utilities
facilities and surveying or subdivision monuments which are destroyed or damaged as a result of any
work performed under this Agreement. Subdivider shall bear the entire cost of replacement or repairs
of any and all public or public utility property damaged or destroyed by reason of any work done
under this Agreement, whether such property is owned by the United States or any agency thereof, or
the State of California, or any agency or political subdivision thereof, or by City or any public or
private utility corporation or by any combination of such owners. Any repair or replacement shall be to
the yatiafaction, and subject to the approval, of the City Engineer.
17. Indemnification.
a. Neither City nor any and all of its officia|o, employees and agents ("Indemnified Parties") shall be
liable for any injury to persons or property occasioned by reason of the acts or omissions of
Subdivider, its agents or employees in the performance of this Agreement. Subdivider further agrees
to protect and hold harmless Indemnified Parties form any and all c|aimn, demonds, causes of action,
liability or loss of any sort, inn|uding, but not limited to, attorney fees and litigation expenoeo, because
of, or arising out of, acts or omissions of Subdivider, its agents or employees in the performance of
this Agreement, including all daims, dmmands, causes of action, |iabi|ity, or loss because of, or arising
out of, in whole or in part, the design of construction of the Improvements. This indemnification and
agreement to hold harmless shall extend to injuries to persons and damages or taking of property
resulting from the design or construction of said aubdivision, and the public improvements as
provided hevain, and in additinn, to adjacent property owners as a consequence of the diversion of
waters from the design or construction of public drainage oyahema, streets and other public
improvements.
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b. Acceptance by City of the Improvements shall not constitute an assumption by City of any
responsibility for any damage or taking covered by this paragraph. City shall not be responsible for
the design or construction of the subdivision or the improvements pursuant to the approved
Improvement Plans or map, regardless of any negligent action or inaction taken by City in approving
the plans or map, unless the particular improvement design was specifically required by City over
written objection by Subdivider submitted to the City Engineer before approval of the particular
improvement deuign, which objection indicated that the particular improvement design was
dangerous or defective and suggested an alternative safe and feasible design. Except as may be
provided abovm. City shall not be liable for any nag|igmnoe, nonfeaamnro, misfeasance or
malfeasance in approving, navimvving, ohaoking, or correcting any plans or specifications or in
appvoving, reviewing or inspecting any work or construction. Nothing contained in this paragraph is
intended to or shall be deemed to limit or waive any protections or immunities afforded by law to City
or any and all of its officials, employees and agents ("Indemnified Parties"), by virtue of city's approval
of the plan or design of the |mp,ovementa, including without limitation the protections and immunities
afforded by Government Code Section 830.6. After acceptance of the improvements, Subdivider shall
remain obligated to eliminate any defect in design or dangerous condition caused by the design or
construction defect; however, Subdivider shall not be responsible for routine maintenance. Provisions
of this paragraph shall remain in full force and effect for ten (10) years following the acceptance by
City of the Improvements. It is the intent of this paragraph that Subdivider shall be responsible for all
Ilability for design and construction of the Improvements installed or work done pursuant to this
Agreement and that city shall not be liable for any nmg|igenno, nonfoananom, misfeasance or
malfeasance in app/oving, revievving, oheokin0, or correcting any plans or specifications or in
approving, reviewing or inspecting any work or construction. The Improvement Security shali not be
required to cover the provisions of this paragraph.
18. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any
provision of the Conditions of Approval. In the event that any requirement or condition of this
Agreement is inconsistent with or fails to include one or more provisions of the Conditions of
/\pprova|, which document(s) is (are) incorporated herein by reference, the provisions in the
Conditions of Approval shali remain in effect and shali control.
19. Severability. In the event that a court of competent jurisdictiodetermines that any provision or
provisions of this Agreement are unonforoeab|e, all provisions not so held shall remain in full force
and effect.
20. Subdivider No Agent of City. Neither Subdivider nor any of Subdivider's aQenta, emp|nyeeu, or
contractors are or shall be considered to be agents of City in connection with the performance of
Subdivider's obiigations under this Agreement.
21. General Provisions.
A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent
by registered or certified mai|, return receipt nsqumsbsd, to the parties at their respective
addresses indicated hereon. Notices personally delivered shall be effective upon delivery.
Notices maiied as provided herein and sent postage prepaid shall be effective upon the date of
delivery or refusal indicated on the return receipt. Either party may change its address for notices
hereunder by notice to the other given in the manner provided in this subparagraph.
B. The bermo, oonditiona, oovenante, and agreements set forth herein shall apply to and bind the
heirs, executors, administrators, assigns, and successors of the parties hereto.
C. Neither party to this Agreement relies upon any warranty or representation not contained in this
Agreement.
O. This Agreement shall be governed by and interpreted with respect to the laws of the State of
E. In the event of any dispute between the parties with respect to this Agreement, the prevailing
party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing
party.
7m,
F. Any failure or delay by either party in asserting any of its rights and remedies as to any default
shall not operate as a waiver of any default or of any such rights or remedies provided for
hereunder.
G. Time is of the essence in the performance of each and every provision of this Agreement.
H. The Recitals to this Agreement are hereby incorporated into and expressly made a part of the
I.
This Agreement constitutes the entire agreernent of the parties with respectto the subject matter,
All modificationo, amendments, or waivers of the terms of this Agreement must be in writing and
signed by the appropriate representatives of the parties.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
CITY. City of La Quinta
78'405Calle Tampico
LaOuinta. CA 92253
760/777-7075"
()wally sIgned by Frank J. Spevacekcn—Frank
Spevacek
Frank J. Spevacek, City Manager
ATTEST:
OAA of.4
Date
Digitally signed by Susan Maysels
cnbSusan Maysels
Date: 2016.02.22 0933:46 -08'00'
Susan K8ayoels, City Clerk
SC Homes Fund, LLC, a Delaware Iimited Iiabflity company
10621 Civic Center Drive
Rancho Cucamonga, CA 91730
Diversified PacifiOevelopment Group, LLC, aCalifornia limited liability company
Authorized '
ByMdt te A. Jordan
~-
By�
Its
Title:
By:
Title:
Manu )0Man)her
ed and Approved:
Date
Date
Approved as to Form:
y Engineer Da e
William H. Ihrke, City Attorney Date
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Exhibit A
SECURITY — TRACT MAP NO. 32201
OFF-SITE IMPROVEMENTS
Improvements designated as "Participatory" have been or will be constructed by others. Security for
Participatory Improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or
released as specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of
performance security. Partial releases shall be for not less than ten percent (10%) of the total
performance security for the Tract and shall not reduce total performance security below the amount
necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases
of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer.
Requests for partial releases, setting forth in detail the amount of work completed and the value thereof,
shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required Tract improvements are
complete and accepted by the City Council.
Improvement Description Performance Labor & Materials
Street
Sidewalk
Landscaping
$ 78,414
$ 15,135
$ 56,720
$ 78,414
$ 15,135
$ 56,720
Totals $ 150,269 $ 150,269
Standard 10% Contingency $ 15,027 $ 15,027
Total Construction Cost $ 165,296 $ 165,296
Professional Fees, Design 10%
Professional Fees, Const 10%
Bond Amount
$ 16,530
$ 16,530
$ 16,530
$ 16,530
198,356 198,356
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MEMORANDUM
TO: Frank J. Spevacek, City Manager
FROM: Timothy R. Jonasson, Design and Development Director / City Engineer
DATE: February 17, 2016
RE: Subdivision Improvement Agreements for the Estates Collection at Coral
Mountain Development Associated with Tract Map No. 32201
Attached for your signature are the agreements with SC Homes Fund, LLC for the
property referenced above.
Please sign the attached agreement(s) and return it to the City Clerk for processing
and distribution.
Requesting department shall check and attach the items below as appropriate:
NLA Contract payments will he charged to account :
A Conflict of Interest Form 700 Stoternent of Economic Interests from Consultant(s) is attached with
no reportable interests in LQ or reportable interests
N/A A Conflict of Interest Form 700 Statement of Economic Interests is not required because this Consultant does not
meet the definition in FPPC regulation 18701(4
Authority to execute this agreement is based upon:
Approved by the City Council on
City Manager's signature authority provided under Resolution Ho. 2015-045 for budgeted expenditures of
$50,000 or less
Initial. to certify that 3 written informal bids or proposals were received and considered in selection
The following required documents ore attached to the agreement:
Insurance certificates as required by the agreement (initialed by Risk Manager on
Performance and Labor & Materials bonds as required by the agreement (crigincris)
X_ City of La Ouinta Business License (copy or note number & expiration date here ti,o.y:11'p:t IL)r cr'e
NJ Purchase Order number
CITY OF LA QUINTA
SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 32201
ON-SITE IMPROVEMENTS
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered into this
day of FEBRUARY , 20 16
by and between SC Homes Fund, LLC, a Delaware limited liability company, hereinafter referred to as
"Subdivider," and the City of La Quinta, a municipal corporation of the State of California, hereinafter
referred to as "City."
RECITALS:
A. Subdivider has prepared and submitted to City for final approval and recordation a final map or Tract
map (the "Map") of a unit of land in the City of La Quinta, County of Riwymide, which unit of land is
known as Tract No. 32201 (the "Tract") pursuant to the provisions of Section 08418, et seq. of the
California Government Code (the "Subdivision Map Act"). The Subdivision Map Act and City
ordinances and regulations relating to the D|ing, approval and recordation of subdivision maps are
sometimes collectively referred to in this Agreement as the "Subdivision Laws."
B. A tentative map of the Tract has been approved subject to the Subdivision Laws and to the
requirements and conditions contained in City Council Resolution No. 2004'O80(the "Resolution of
Approva|''). The Resolution of Approval is on file in the office of the City Clerk and is incorporated into
this Agreement by reference.
C. Prior to approval of the Map, Subdivider is required to install or agree to install certain public and
private improvements (the lmprovements).
D. The Improvements have not been installed and accepted at this time.
E. It is therefore necessary that Subdivider and City enter into an agreement for the installation of the
lmprovements as provided in Section 66462 of the Subdivision Map Act. In consideration of approval
of a final map for the Tract by the City Council, Subdivder desires to enter into this Agreemert,
whereby Subdivider promises to install and oomp|ehe, at Subdivider's own expenee, all the public
improvement work required by City in connection with the proposed Tract. Subdivider has secured
this Agreement by improvement security required by the Subdivision Laws and approved by the City.
NOW, THEREFORE, it is agreed by and between the parties hereto as follows:
1. Improvement Plans. Prior to submittal of the Map for approval by the City Council, Subdivider shall
furnish complete original improvement plans for the onnotnuotion, installation and completion of the
Improvements meeting the requirements of the City Engineer. The Improvement Plans for the Tract
shall be maintained on file in the office of the City Engineer and shall be incorporated into this
Agreement by reference. All references in this Agreement to the Improvement Plans shall include
reference to any specifications for the Improvements as approved by the City Engineer.
2. Improvements. Subdivider shall construct the Improvements required to be constructed on the
tmprovement Plans or agreed to be constructed under the Resotution of Approval and this Agreement
as more specificatty described in Exhibit ''A." attached hereto and expressly made a part hereof by
this reference, and shall bear the full cost thereof. The methods, standards, specifications, sequence,
and scheduting of construction shall be as approved by the City Engineer.
3. Improvement Security. Subdivder shall at all times guarantee Subdivider's performance of this
Agreement by furnishing to City, and meintaining, good and sufficient security as required by the
Subdivision Laws on forms and in the amounts approved by City for the purposes as follows:
A. One class of security to be provided by Subdivider, hereinafter referred to as "performance
security," shall assure the faithful performance of this Agreement including construction of the
|mpnovoments, payment of Subdivider's fair share of Improvements which have been or will be
constructed by others ("Participatory |mpnnvemmnts^), and payment of plan check and permit
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fees. The performance security shall also include good and sufficient security in the amount of
one hundred percent (100%) of the estimated cost of setting subdivision monuments as stated
hereafter in this Agreement ("Monumentation Security"), A second class of security to be
provided by Subdividar, hereinafter referred to as "payment security," shall assure the payment of
the cost of labor, equipment and materials supplied to construct the Improvements. A third class
of security to be provided by Subdividar, hereinafter referred to as warranty security," shall serve
as a guarantee and warranty of the Improvements for a period of one year following the
completion and acceptance of the Improvements. Subdivider shall furnish performance and
payment security prior to and as a condition precedent to City Council approval of the Map.
Subdivider shall provide warranty security after Improvements are complete and prior to
acceptance of the Improvements by the City Council. Warranty security shall not be required for
Monumentation or Participatory Improvements. However, the City may utilize Monumentation
Security for performance of or payment for the work in accordance with the Subdivision Map Act.
As part of the obligation secured by each of the performance security, payment security and
warranty aeouhh/, and in addition to the face amount of each such oeouh<y, each such security
shall include and assure the payment of costs and reasonable expenses and fees, including
reasonable attorney's fees, incurred by City in successfully enforcing the obligations thereby
secured.
B. Improvement security shall conform with Section 66499 of the California Government Code and
may be one or more of the following:
1) A cash deposit with City or a responsible escrow agent or trust company, at City's option.
2) Surety bonds, of the form specified in subsection 66499.2 of the California Government
Code, issued by a surety or sureties listed in the U.S, Department of Treasury Circular 570
(latest version).
3) Certificates of deposit, in City's name, from one or more financial institutions subject to
regulation by the state or federal government and having a financial quality rating of "A" or
bmttorondaonmmitmantno|iabi|ih/nadngof''F<'2^orbettmronthe|nvostmmntDatoExrhange
(of the Los Angeles County Treasurers office).
4) Irrevocable letters of credit, in a form acceptable to and approved by the City Attorney, issued
by one or more financial institutions meeting the requirements of Paragraph (3), pledging that
the funds necessary to carry out the completion of the Improvements are on deponit,
guaranteed for payment, and constitute a trust fund which is not subject to levy or attachment
by any creditor of the depositor until released by City. Letters of credit shall guarantee that all
or any portion of the funds available pursuant to the letters of credit will be paid upon the
written demand of City and that such written demand need not present documentation of any
type as a condition of payment, including proof of loss. The duration of any such letter of
credit shall be for a period of not less than one year from the execution of the agreement with
which it is provided and shall atmte, on its face, that the letter of credit will be automatically
renewed until such time that City authorizes its expiration or until sixty (60) days after City
receives notice from the financial institution of intent to allow expiration of the letter of credit.
5) A lien upon the subdivided property, if City finds that it would not be in the public interest to
require the installation of the Improvements sooner than two (2) years after recordation of the
final map or Tract map for which the Improvements are required. The lien shall provide a
collateral value of three (3) times the estimated cost of the Improvements and shall include
the power of sale of the real property, all buildings and improvements thereon, or that may be
erected upon or made thereto, together with all hereditaments and appurtenances thereunto
be|onging, or in any wise apperteining, and the neomn/adons, rmmoinders, nants, innuon, and
profits thereof. The collateral value of the property shall be established at Subdivider's
expense through an appraisal approved by City.
6) An instrument of credit from an agency of the abate, federal or local government, when any
agency of the state, federal, or local government provides at least twenty percent (20%) of
the financing for the lmprovements.
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7) When Subdivider is a non-profit organizadon, security may be negotiable bonds, of the kind
approved for securing deposits of public moneys with City or in favor of City, as specified in
Section 16430 of the California Government Code, deposited, at City's option, with City or a
responsible escrow agent or trust company.
C. All securities shall be furnished in accordance with the provisions of Exhibit A. The amount of the
performance security shall equal one hundred percent (100%) of the estimated cost of
constructing the Improvements, including payment of plan check and permit fees, as estimated by
the City Engineer or a duly authorized representative of the City Engineer. The amount of
Payment security shall equal the amount of the amount of performance seouhty, except as
otherwise set forth in Exhibit A, and shall be furnished as a separate security. Warranty security
shall equal Ten Percent (10%) of the amount of performance security except as otherwise set
forth in Exhibit A. The securities required by this Agreement shall be kept on file with the City
Clerk. The terms of the security documents specified in this Agreement are incorporated into this
Agreement by this reference. If any security is replaced by another approved aoouhty, the
replacement shall be filed with the City Clerk and, upon fi|ing, shall be deemed to have been
made a part of and incorporated into this Agreement. Upon filing of a replacement security with
the City Clerk, the former security may be released. The City Engineer shall approve replacement
of security.
D. At the time of submittal of security, Subdivider shall pay to City administrative fees applicable to
the form of security provided. Administrative fees shall apply to the subdivision (final map, Tract
map or waiver of Tract map) rather than to individual security instruments. The fees shall be paid
separately for each different form and/or source (surety or financial institution) of security initially
submitted and for substitution of securities but shall not be required for submittal of warranty
security if the warranty security is of the same form and from the same source as the
performance security it replaces. Administrative fees for security shall be as foliows:
1) For certificates of deposit, bonds and letters of credit as described in Paragraphs 2), 3) and
4) of SECTION 3.B., which require the establishment of evidence of the reliability of the
surety or financial instituUon, the administrative fee shall be One Hundred Fifty Dollars
2) For liens on real property as described in Paragraph 5) of SECTION 3.B., for which City will
prepare lien agreements and subordination agnaements, administer valuation of the real
property and administer the agreements over the life of the lien, all of which require legal
assistance and financial advice, Subdivider shall pay to City an administration fee of One Half
of One Percent (0.5%) of the estimated cost of the improvements secured but not less than
Five Hundred Dollars ($500.00) nor more than Five Thousand Dollars ($5,000.00).
3) For other forms of security listed in Section 3 B, above, there will be no administrative fee.
E. Participatory |mprovmments, if any, are identified in Exhibit A. Security for Participatory
Improvements shall remain in place until the Participatory Improvements are constructed and
actual costs are known and paid by Subdivider, or until Subdivider pays to City the estimated cost
of the Participatory |mprovemanta, and shall guarantee the reimbursement by Subdivider of
Subdivider's share of the cost of the Participatory Improvements. Payment security and warranty
security shall not be required for Participatory Improvements.
Upon written demand from City, Subdivider shall deposit cash with City in lieu of or in
replacement of security guaranteeing Participatory Improvements. If Subdivider fails to deposit
said cash within 30 days of the date of the written demand from City. City may present a written
demand to Subdivider's Surety for payment of said cash and Subdivider's Surety shall pay to City
the Iesser of: 1) the amount demanded, or 2) the amount of the security.
F. Security shall not mxpna, be reduced or become wholly or partially invalid for any reoson,
including non-payment of pnemiuma, modifications of this Agreement and/or expiration of the time
for performance stated in this Agreement.
G. Security shall be released in the following manner:
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1) Performance security shall be released upon the final completion and acceptance or
approval, by the City Council of the Improvements subject to the provisions of Section 10 of
this Agreement.
2) The City Engineer may authorize partial reduction of performance security as work
progreuues, upon application by Subdivider. However, no such reduction shall be for an
amount less than Ten Percent (10%) of the total performance security provided for the faithful
performance of the act or work. In no event shall security be reduced below that required to
guarantee the completion of the act or work or obligation secured, plus Ten Percent (10Y6).
The City Engineer shall not allow more than two partial reductions of security furnished for
any improvement agreement.
3) Participatory Improvement security shall be released upon payment by Subdivider of
Subdivider's share of the cost or estimated cost of the Participatory Improvements.
4) If City receives no notice of recorded claims of lien, labor and materials security shall be
released in full 90 days after final acceptance and/or approval by the City Council, of the
Improvements. If City receives notice of any recorded lien, the provisions of the Subdivision
Map Acshall apply.
5) No security given for the guarantee or warranty of work shall be released until the expiration
of the warranty period and until any claims filed during the warranty period have been settled.
As provided in paragraph 13 of this Agreement, the warranty period shall not commence until
final acceptance of all the work and improvements by the City pursuant to Paragraph 10.
Warranty security not utilized during the warranty period shall be released one year after final
acceptance or approval by the City Council of all Improvements. Hovvaver, if at the end of the
one-year warranty pehod, there are one or more outstanding requests by City for
performance of work or provision of materials under the terms of the werranty, warranty
security shall be retained until the outstanding requests are satisfied or until Subdivider has
made other arrangements satisfactory to the City Engineer.
6) City may retain from any security released an amount sufficient to cover costs and
reasonable expenses and fees, including reasonable attorneys' fees.
4. Permits Required. Prior to commencing any phase of work, Subdivider shall obtain all permits
required for that phase of work and pay all required fees. Work performed under a permit or permits
shall comply with aU provisions of the required permits.
5. Off-site Improvements. When the construction of one or more of the Improvements requires or
necessitates the acquisition of real property not owned by Subdivider or City, Subdivider shall use its
best efforts purchase such real property at a reasonable price. In the event that Subdivider is
unsuonessfu|, despite its best efforts, to acquire such real property at a reasonable price, Subdivider
may request in writing that City attempt to acquire such real property. City may, but is not required to,
agree to attempt to acquire such real property on behalf of Subdivider. If City so agnaon. City and
Subdivider shall enter a separate written agreement in a form acceptable to the City Attorney. Said
separate agreement shall provide that Subdivider advance to City One Hundred Fifty Percent (150Y6)
of the appraised fair market value of the real property. Any unexpended portion of said advance shall
be refunded to Subdivider. Any additional funds required for acquisition of the real property shall be
paid by Subdivider to City upon the conveyance of said real property to Subdivider. In no event shall
the failure of Subdivider or City to acquire such real property axouee, waive, or otherwise terminate
Subdivider's obligation to construct the applicable improvement pursuant to this Agreement or the
Conditions of Approval.
6. Completion of Improvement ; Inspection.
6.1 Construction of Improvements. Subdivider shall begin construction of the Improvements within
ninety (90) days and shall complete construction within twelve (12) months after the approval of this
Agreement. Portions of the Improvements may be completed at a later data, as determined by the
City Engineer or as set forth in Exhibit A. Failure by Subdivider to begin or complete construction of
the Improvements within the specified time periods shall constitute cause for City, in its sole
discretion and when it deems necessary, to declare Subdivider in default of this agreement, to revise
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improvement security requirements as necessary to ensure completion of the improvamnnta, and/or
to require modifications in the standards or sequencing of the Improvements in response to changes
in standards or conditions affecting or affected by the Improvements. Said failure shall not otherwise
affect the validity of this agreement or Subdivider's obligations hereunder.
6.2 Inspection. Subdivider shall at all times maintain proper facilities and safe access for inspection
of the public improvements by City and to the shops wherein any work is in preparation. Upon
completion of the work, the Subdivider may request a final inspection by the City Engineer or the City
Engineer's authorized representative. If the City Engineer or the designated representative
determines that the work has been completed in accordance with this Agpemment, then the City
Engineer shall certify the completion of the public improvements to the City Council. No
improvements shall be finally accepted unless all aspects of the work have been inspected and
determined to have been completed in accordance with the Improvement Plans and City standards
and accepted by the City as described in Paragraph 10 of this Agreement. Subdivider shall bear all
costs of plan check, inspection and certification.
7. Force Majeure. In the event that Subdivider is unable to perform within the time limits herein due to
sthkeo.actofGod.oroUhereventobeyondSubdivide/snontro|.bheUme|imitaforob|igaUonsaffecb»d
by such events will be extended by the period of such events.
8. Time Extension. Subdivider may make application in writing to the City Council for an extension of
time for completion of the Improvements. The City Council, in its sole and absolute dionreUon, may
approve or deny the request or conditionally approve the extension with additions or revisions to the
terms and conditions of this Agreement.
As a condition of the time extension, Subdivider shall furnish securities, similar in form and substance
to those required in SECTION 3 heneinebove, to cover the period of extension. The value of the
securities shall be sufficient to ensure the performance of and payment for Improvements that remain
incomplete at the time of the e/tennion, and to provide warranty security on completed
Improvements.
9. Survey Monuments. Before final approval of street improvmmonts. Subdivider shall place survey
monuments in accordance with the provisions of Sections 66495. et sec. of the Subdivision Map Act
and of the La Quinta Municipal Code. Subdivider shall provide the City Engineer written proof that
the monuments have been set, evidence of payment and receipt thereof by the engineer or surveyor
setting the monuments, and intersection monument tie -outs for monuments set in public streets.
10. Final Accetance of Improvements. At the completion of construction and prior to acceptance ofthe
Improvements by City, Subdivider shall submit a request for final approval by City. The request shall
be accompanied by any required certifications from Subdividers engineers or surveyors, approval
letters from other agencies having jurisdiction over and approval authority for improvements required
by this Agreement or the Conditions of Approval, and any required construction quality documentation
not previously submitted.
Upon receipt of said request, the City Engineer or a duly -authorized representative will review the
required documentation and will inspect the Improvements. If the Improvements are determined to
be in accordance with applicable City standards and apeoifioadonu, and as provided herein,
obligations required by the Conditions set forth in the Resolution of Approval and this Agreement
have been satisfied, and Subdivider has provided revised plans as required in Paragraph 12,
hereinafter, the City Engineer shall recommend acceptance of the Improvements by the City Council.
11. Injury to Improvements. Until such time as the Improvements are accepted by City in accordance
with Paragraph 10, Subdivider shall be responsible for and bear the risk of loss to any of the
improvements constructed or installed. Until such time as all Improvements required by this
Agreement are fully completed and accepted by City. Subdivider will be responsible for the care,
maintenance of, and any damage to such improvements. City shall not, nor shall any officer or
employee thereof, be liable or responsible for any accident, loss or damage, regardless of cause,
happening or occurring to the work or improvements specified in this Agreement prior to the
completion and acceptance of the work or improvements. All such risks shall be the responsibility of
and are hereby assumed by Subdivider.
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12. Revisions to Plans. When the Improvements have been inspected and approved by the City
Engineer, Subdivider shall make any necessary revisons to the original plans held by City so the
plans depict the actual lmprovements constructed. When necessary revisions have been made, each
separate sheet of the plans shall be clearly marked with the words "As -Built," "As -Constructed," or
"Record Drawing," the marking shall be stamped by an engineer or surveyor, as appropriate for the
improvements thereon, who is licensed to practice in California, and the plans shall be resubmitted to
the City Engineer.
13. Improvement Warranty. Subdivider hereby guarantees the Improvements to City for a period of one
(1) year, beginning on the date of final acceptance of the Improvements by the City Counci|, against
any defective work or labor done, or defective materials furnished, and shall repair or replace such
defective work or materials. If within the warranty period any work or improvement or part of any
work or improvement done,furnished, inutaUed, constructed or caused to be done, furniahed, installed
or constructed by Subdivider fails to fulfill any of the requirements of this Agreement or the
improvement plans and specifications referred to herein, Subdivider shall without delay and without
any cost to City, repair or replace or reconstruct any defective or otherwise unsatisfactory part or
parts of the work or structure. Should Subdivider fail to act promptly or in accordance with this
nequinement. Subdivider hereby authorizes City, at City's sole nption, to perform the work twenty (20)
days after mailing written notice of default to Subdivider and to Subidivider's Suveh/, and agrees to
pay the cost of such work by City. Should City determine that an urgency requires repairs or
replacements to be made before Subdivider can be nodOod. City may, in its sole discretion, make the
necessary repairs or replacement or perform the necessary work and Subdivider shall pay to City the
cost of such repairs
14. Release of Security. City shall retain and release securities in accordance with the provisions of
Section 3 of this agreement. Prior to the release of payment security, the City Engineer may require
Subdivider to provide a title report or other evidence sufficient to show claims of lien, if any, that may
affect the amount of payment security released,
15. City Riqht to Cure. If Subdivider fails to perform any obligation hereunder and such obligation has not
been perfonned, or commenced and diligently puroued, within sixty (60) days after written notice of
default from City, then City may perform the obligation, and Subdivider shall pay the entire cost of
such performance by City including costs of suit and reasonable attorney's fees incurred by City in
enforcing such obligation. In cases of emergency or compelling public intenae1, as determined by the
City Engineer, the requirement for written notice of default and/or the passage of sixty (60) days shall
be deemed waived and all other provisions of this Article shall remain in effect.
16. lnjury to Public lmprovements, Public Property or Public Utility Facilities. Subdivider shall replace or
have replaced, or repair or have repaired, as the case may be, all public improvements, public utilities
facilities and surveying or subdivision monuments which are destroyed or damaged as a result of any
work performed under this Agreement. Subdivider shall bear the entire cost of replacement or repairs
of any and all public or public utility property damaged or destroyed by reason of any work done
under this Agreement, whether such property is owned by the United States or any agency thereof, or
the State of California, or any agency or political subdivision thereof, or by City or any public or
private utility corporation or by any combination of such owners. Any repair or replacement shall be to
the yatiafaction, and subject to the approval, of the City Engineer.
17. Indemnification.
a. Neither City nor any and all of its officia|o, employees and agents ("Indemnified Parties") shall be
liable for any injury to persons or property occasioned by reason of the acts or omissions of
Subdivider, its agents or employees in the performance of this Agreement. Subdivider further agrees
to protect and hold harmless Indemnified Parties form any and all c|aimn, demonds, causes of action,
liability or loss of any sort, inn|uding, but not limited to, attorney fees and litigation expenoeo, because
of, or arising out of, acts or omissions of Subdivider, its agents or employees in the performance of
this Agreement, including all daims, dmmands, causes of action, |iabi|ity, or loss because of, or arising
out of, in whole or in part, the design of construction of the Improvements. This indemnification and
agreement to hold harmless shall extend to injuries to persons and damages or taking of property
resulting from the design or construction of said aubdivision, and the public improvements as
provided hevain, and in additinn, to adjacent property owners as a consequence of the diversion of
waters from the design or construction of public drainage oyahema, streets and other public
improvements.
6my
b. Acceptance by City of the Improvements shall not constitute an assumption by City of any
responsibility for any damage or taking covered by this paragraph. City shall not be responsible for
the design or construction of the subdivision or the improvements pursuant to the approved
Improvement Plans or map, regardless of any negligent action or inaction taken by City in approving
the plans or map, unless the particular improvement design was specifically required by City over
written objection by Subdivider submitted to the City Engineer before approval of the particular
improvement deuign, which objection indicated that the particular improvement design was
dangerous or defective and suggested an alternative safe and feasible design. Except as may be
provided abovm. City shall not be liable for any nag|igmnoe, nonfeaamnro, misfeasance or
malfeasance in approving, navimvving, ohaoking, or correcting any plans or specifications or in
appvoving, reviewing or inspecting any work or construction. Nothing contained in this paragraph is
intended to or shall be deemed to limit or waive any protections or immunities afforded by law to City
or any and all of its officials, employees and agents ("Indemnified Parties"), by virtue of city's approval
of the plan or design of the |mp,ovementa, including without limitation the protections and immunities
afforded by Government Code Section 830.6. After acceptance of the improvements, Subdivider shall
remain obligated to eliminate any defect in design or dangerous condition caused by the design or
construction defect; however, Subdivider shall not be responsible for routine maintenance. Provisions
of this paragraph shall remain in full force and effect for ten (10) years following the acceptance by
City of the Improvements. It is the intent of this paragraph that Subdivider shall be responsible for all
Ilability for design and construction of the Improvements installed or work done pursuant to this
Agreement and that city shall not be liable for any nmg|igenno, nonfoananom, misfeasance or
malfeasance in app/oving, revievving, oheokin0, or correcting any plans or specifications or in
approving, reviewing or inspecting any work or construction. The Improvement Security shali not be
required to cover the provisions of this paragraph.
18. No Modification of Conditions. This Agreement shall in no respect act to modify or amend any
provision of the Conditions of Approval. In the event that any requirement or condition of this
Agreement is inconsistent with or fails to include one or more provisions of the Conditions of
/\pprova|, which document(s) is (are) incorporated herein by reference, the provisions in the
Conditions of Approval shali remain in effect and shali control.
19. Severability. In the event that a court of competent jurisdictiodetermines that any provision or
provisions of this Agreement are unonforoeab|e, all provisions not so held shall remain in full force
and effect.
20. Subdivider No Agent of City. Neither Subdivider nor any of Subdivider's aQenta, emp|nyeeu, or
contractors are or shall be considered to be agents of City in connection with the performance of
Subdivider's obiigations under this Agreement.
21. General Provisions.
A. All notices pursuant to this Agreement shall be in writing and shall be personally delivered or sent
by registered or certified mai|, return receipt nsqumsbsd, to the parties at their respective
addresses indicated hereon. Notices personally delivered shall be effective upon delivery.
Notices maiied as provided herein and sent postage prepaid shall be effective upon the date of
delivery or refusal indicated on the return receipt. Either party may change its address for notices
hereunder by notice to the other given in the manner provided in this subparagraph.
B. The bermo, oonditiona, oovenante, and agreements set forth herein shall apply to and bind the
heirs, executors, administrators, assigns, and successors of the parties hereto.
C. Neither party to this Agreement relies upon any warranty or representation not contained in this
Agreement.
O. This Agreement shall be governed by and interpreted with respect to the laws of the State of
E. In the event of any dispute between the parties with respect to this Agreement, the prevailing
party shall be entitled to prompt payment of its reasonable attorneys' fees from the non -prevailing
party.
7m,
F. Any failure or delay by either party in asserting any of its rights and remedies as to any default
shall not operate as a waiver of any default or of any such rights or remedies provided for
hereunder.
G. Time is of the essence in the performance of each and every provision of this Agreement.
H. The Recitals to this Agreement are hereby incorporated into and expressly made a part of the
terms of this Agreement.
I. This Agreernent constitutes the entire agreement of the parties with respectto the subject matter.
All modifiuetiona, amendmonta, or waivers of the terms of this Agreement must be in writing and
signed by the appropriate representatives ofthe parties
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first
written above.
CITY: City of La Quinta
78'4Q5Calle Tampico
LoOuinta.CA82253
760/777-7075
Digitally signed by Frankt Spevacek
DN: serialNumberuln615nh01202carnj,
ou"ank,*,°+~"rank 1.
Frank J. Spevacek, City Manager
ATTEST:
Date
Digitally signed by Susan Maysels
Date: 2016.02.22 09:34:55 -08'00'
SC Homes Fund, LLC, a Delaware Iimited Iiability company
10621 Civic Center Drive
Rancho Cucamonga, CA 91730
By: Diversified Pa[DevebopmentGroup.LLC.aCa|ifornia|imibad|iabi|bycompeny
Its: AotUnrTod/Agont.'7 .�
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By:
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=��a�AJordan
Title: _k4ana't)in8Menba|
By:
Title:
Reviewed and Approved.
hyR.Jot
Approved as to Form:
Engineer D
/7— (.6
Date
Date
William H. Ihrke, City Attorney
Date
8ofo
Exhibit A
SECURITY — TRACT MAP NO. 32201
ON-SITE IMPROVEMENTS
Improvements designated as "Participatory" have been or will be constructed by others. Security for
Participatory Improvements shall remain in place indefinitely until called upon or released by City.
Monumentation security shall guarantee performance of or payment for the work and shall be utilized or
released as specified in Chapter 4, Article 9 of the Subdivision Map Act.
As elements of the work are completed, Subdivider may request a maximum of two partial releases of
performance security. Partial releases shall be for not less than ten percent (10%) of the total
performance security for the Tract and shall not reduce total performance security below the amount
necessary to complete the Improvements plus ten percent (10%) of the original amount. Partial releases
of performance security will be evaluated and may be granted, in whole or in part, by the City Engineer.
Requests for partial releases, setting forth in detail the amount of work completed and the value thereof,
shall be made in writing to the City Engineer.
Labor & materials security shall remain in place until 90 days after all required Tract improvements are
complete and accepted by the City Council.
Improvement Description Performance Labor & Materials
Rough Grading $ 56,340
Street $ 149,379
Storm Drain $ 48,354
Water $ 10,900
Sewer $ 18,000
Dry Utilities $ 142,500
Landscaping $ 66,212
Monumentation $ 10,000
Totals $ 501,685
Standard 10% Contingency $ 50,168
Total Construction Cost $ 551,853
Professional Fees, Design 10%
Professional Fees, Const 10%
$ 55,185
$ 55,185
Bond Amount $ 662,223
9 of 9
MEMORANDUM
TO: Frank J. Spevacek, City Manager
FROM: Timothy R. Jonasson, Design and Development Director / City Engineer
DATE: February 17, 2016
RE: Subdivision Improvement Agreements for the Estates Collection at Coral
Mountain Development Associated with Tract Map No. 32201
Attached for your signature are the agreements with SC Homes Fund, LLC for the
property referenced above.
Please sign the attached agreement(s) and return it to the City Clerk for processing
and distribution.
Requesting department shall check and attach the items below as appropriate:
NLA Contract payments will he charged to account :
A Conflict of Interest Form 700 Stoternent of Economic Interests from Consultant(s) is attached with
no reportable interests in LQ or reportable interests
N/A A Conflict of Interest Form 700 Statement of Economic Interests is not required because this Consultant does not
meet the definition in FPPC regulation 18701(4
Authority to execute this agreement is based upon:
Approved by the City Council on
City Manager's signature authority provided under Resolution Ho. 2015-045 for budgeted expenditures of
$50,000 or less
Initial. to certify that 3 written informal bids or proposals were received and considered in selection
The following required documents ore attached to the agreement:
Insurance certificates as required by the agreement (initialed by Risk Manager on
Performance and Labor & Materials bonds as required by the agreement (crigincris)
X_ City of La Ouinta Business License (copy or note number & expiration date here ti,o.y:11'p:t IL)r cr'e
NJ Purchase Order number
City of La Quinta
CITY COUNCIL MEETING: January 19, 2016
STAFF REPORT
AGENDA TITLE: ADOPT RESOLUTION GRANTING CONDITIONAL APPROVAL OF FINAL
TRACT MAP AND SUBDIVISION IMPROVEMENT AGREEMENTS ASSOCIATED WITH THE
ESTATE COLLECTION AT CORAL MOUNTAIN DEVELOPMENT (TRACT MAP NO. 32201)
RECOMMENDATION
Adopt a resolution granting conditional approval of Final Tract Map and Subdivision
Improvement Agreements for the Estate Collection at Coral Mountain Development
associated with Tract Map No. 32201; and authorize the City Manager to execute said
agreements.
EXECUTIVE SUMMARY
SC Homes Fund, LLC. (Developer), the developer of the Estate Collection at Coral
Mountain, has requested conditional approval of a Final Tract Map.
This is a ministerial action that occurs when the conditions of development are
satisfied or secured through agreements. Submitting securities for the off-site and
on-site improvements is the only outstanding item. The Developer has 30 days to
complete this item.
The Developer has agreed to complete the conditions of development within the
next 30 days, thus, staff supports the recommended action.
FISCAL IMPACT
None. Securities of sufficient value will be submitted to secure the incomplete
improvements prior to recordation of the Final Tract Map.
BACKGROUND/ANALYSIS
Estate Collection at Coral Mountain is a residential development located at the northwest
corner of Avenue 60 and Madison Street (Attachment 1). The Final Tract Map subdivides
the property into 24 single-family lots. The site was previously rough graded. On-site
street improvements, the perimeter wall, and the retention basin were partially
completed by the previous developer.
The Developer seeks conditional approval of the Final Tract Map (Attachment 2) and
Subdivision Improvement Agreements (Attachment 3). Thereafter, the Developer has 30
days to submit securities for the off-site and on-site improvements. If the Developer fails
to complete this item within 30 days, the map will be rescheduled for Council
consideration only after all items are complete.
CONSENT CALENDAR ITEM NO.
79
ALTERNATIVES
The Council could deny conditional approval and require the Developer to complete all
items; however, this would unnecessarily burden the Developer and delay the project,
thus, not recommended.
Prepared by: Bryan McKinney, P.E., Principal Engineer
Approved by: Timothy R. Jonasson, P.E., Public Works Director/City Engineer
Attachments: 1. Vicinity Map
2. Tract Map 32201
3. Subdivision Improvement Agreements
80
V I C I N I T Y M A P
NOT TO SCALE
ATTACHMENT 1
TRACT map no. 32201
Estate collection at coral mountain
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